The IRS has been trying to spread the word lately on a tax deduction that could save millions of American’s hundreds – if not thousands – of dollars this tax year. So, if you haven’t filed your 2018 tax return, or even if you have already but you’re on the lookout for new deductions come 2019, it’s time to learn about the Earned Income Tax Credit (EITC).
Available for families or individuals with a low to moderate income, the EITC is an additional tax credit designed to give tax relief for those who qualify under it’s stipulations and earned a yearly income under the thresholds (listed here). As the maximum credit amount available can multiply with each eligible child, the amounts are as follows:
- $6,431 with three or more qualifying children;
- $5,716 with two qualifying children;
- $3,461 with one qualifying child; or
- $519 with no qualifying children.
Sadly, according to IRS statistics, millions of Americans miss out on the EITC every year, while yet millions more can qualify, such as families who:
- Reside within Native American communities or rural areas;
- Consist of employed grandparents with guardianship over their grandchildren;
- Are disabled taxpayers or parents of disabled children;
- Have served in the military – whether veteran or active duty; or
- Work in hospitals or the healthcare field.
As your eligibility can change with your family and financial situation, taxpayers are encouraged to check whether they qualify through the EITC Assistant each year, while the IRS also hosts free community tax preparation assistance for seniors of 60 or older, and taxpayers with an income of $55,000 or lower.
Any of these IRS-trained, volunteer tax preparers should be able to check for eligibility or answer any questions you may have on the EITC, while more information on the tax credit can be found online here.